Does Monicals Pizza have an obligation to provide relocation assistance to a franchisee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not relocate the Franchised Restaurant without the prior written consent of Franchisor. If the lease for the Approved Location expires or terminates through no fault of Franchisee or if the Franchised Restaurant's premises are destroyed, condemned or otherwise rendered unusable through no fault of Franchisee, Franchisee may request the right to relocate the Franchised Restaurant either permanently or temporarily as appropriate under the circumstances and Franchisor shall not unreasonably withhold its consent to such relocation. Should Franchisee desire to relocate the Franchised Restaurant for any other reason, Franchisee shall request the right and Franchisor may approve or disapprove such request. Any relocation of the Franchised Restaurant shall be at Franchisee's sole expense, and shall proceed in accordance with the requirements set forth in Sections 5.1 through 5.7. Franchisor has the right to charge Franchisee for any costs incurred by Franchisor in providing assistance to Franchisee, including, but not limited to, legal and accounting fees. Notwithstanding the foregoing, Franchisor has no obligation to provide relocation assistance. If Franchisor and Franchisee do not agree upon a substitute site within ninety (90) days after the lease expires or is terminated or the Approved Location is rendered unusable, this Agreement shall terminate as provided in Section 16.2.1.1.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 FDD, Monicals Pizza does not have an obligation to provide relocation assistance to its franchisees. While a franchisee may request to relocate their Monicals Pizza restaurant, any such relocation will be at the franchisee's sole expense. Monicals Pizza has the right to charge the franchisee for any costs it incurs while providing assistance, such as legal and accounting fees, but is not required to provide relocation assistance.
If the lease expires or terminates through no fault of the franchisee, or if the premises are destroyed or rendered unusable, the franchisee may request to relocate the restaurant. Monicals Pizza will not unreasonably withhold consent to this relocation request. However, if Monicals Pizza and the franchisee cannot agree on a substitute site within 90 days after the lease expires, is terminated, or the location is rendered unusable, the Franchise Agreement will terminate.
This policy places the responsibility and cost of relocation entirely on the franchisee. It is important for prospective franchisees to consider the potential costs and challenges associated with relocation, and to factor these into their business planning. Franchisees should also be aware of the conditions under which the agreement may terminate if a suitable relocation site cannot be found within the specified timeframe.